Saturday, 9 April 2016

Prisons are big money makers

The two largest private prison firms in the United States are exploiting a loophole in the tax code to secure millions of dollars in corporate tax breaks.

Corrections Corporation of America (CCA) and GEO Group avoided a combined $113 million in federal income taxes in 2015 alone, according to an analysis of federal financial filings by the racial and economic justice group Enlace.

The prison business is booming despite efforts to reduce the nation's prison population, which has exploded in recent decades and forced the government to contract with private prison companies to meet demand. Last year, CCA reported $222 million in net profits, and GEO Group reported $139 million.